Old system strengthening projects completed in 970 towns; fresh sanctions for 3616 towns.

Expected to boost industry performance, as IPDS directs interventions in urban areas where most industrial hubs/ centres are located.

Sector Myths

Myth: UDAY is not Performing

Reality:

UDAY is a 3 year long programme where performance of the States is contingent to the time spent under UDAY, as different states have joined UDAY at different points in time

Early results under UDAY are encouraging, with some distinct benefits on operations. Going forward, improvement in metering to enhance the performance

Performance slack in some states may be attributed to interlinked factors like lead time of interventions, data-lag and seasonality of operations etc

Myth: UDAY is not creating demand

Reality:

UDAY is a supply side intervention which aims to release the latent demand, that exists in the system due to short supply of power to the consumers.

Under UDAY, total energy billed by DISCOMs increased by 9% in FY17 over FY16, indicating a considerable growth in consumption, which in the past years had grown around 5-6%

Myth: Increase in rural connection under SAUBHAGYA [PradhanMantriSahajBijliHarGharYojana] will result in increase in losses and low cost recovery

Reality:

SAUBHAGYA scheme would ensure energy access to all households; expected increase in demand of 28 GW

Increase in demand would lead to lower fixed costs due to higher PLFs

100% metering is integral to SAUBHAGYA ensuring theft control and revenue recovery

Above details are for 14 states contributing 95% of the agriculture sales. Percentage of agricultural sales have remained largely in the same range from FY14 to FY16. Therefore, there is no tell-tale sign of losses being loaded on the agricultural category.

UDAY Performance

A total of 19 States have increased their tariff either in FY 16 or FY17. Tariff hikes have resulted in an additional revenue of Rs. 10,009 Cr. in FY 16 and Rs. 20,427 Cr. in FY17.